Jane Doe
Tue, Sep 5, 2023 7:55 PM

Expert Urges Nigerian Finance Minister to Address Rising Inflation, Insecurity, and Cost of Governance

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Expert Urges Nigerian Finance Minister to Address Rising Inflation, Insecurity, and Cost of Governance
Prof. Akpan Ekpo, Chairman of the Foundation of Economic Research and Training, has called on the newly appointed Nigerian Minister of Finance, Mr Wale Edun, to tackle the challenges of rising inflation, insecurity, and the cost of governance. In an interview, Ekpo highlighted the factors contributing to inflation and suggested possible solutions. He stressed the need to curtail government expenditure, address the security situation, and boost productivity to combat inflation effectively.

Lagos, Sept. 5, 2023 - In a recent interview, Prof. Akpan Ekpo, Chairman of the Foundation of Economic Research and Training, shared his expectations for the newly appointed Minister of Finance, Mr Wale Edun. Ekpo highlighted the pressing issues of rising inflation, insecurity, and the cost of governance that need urgent attention.

Nigeria's inflation rate soared to 24.08% in July, as reported by the National Bureau of Statistics (NBS), up from 22.79% in June. Ekpo attributed the inflationary pressure to the removal of subsidies and increases in utilities, categorizing it as a cost-push inflation. To tackle this challenge, he emphasized the need to curtail government expenditure and called for a concerted effort to solve the security crisis.

"If we can curtail expenditure, which I doubt, and address the security situation, we might be able to contain inflation. The food component is primarily driving the rising inflation rate, and solving security issues would allow farmers to resume their agricultural activities, thus reducing food prices," Ekpo explained.

Ekpo also drew attention to the impact of exchange rate unification on inflation. With the reopening of the foreign exchange market for rate unification, the supply-side constraints and limited access to foreign exchange have reemerged. This, according to Ekpo, leads to automatic inflation due to the increased cost of imports.

"To address inflation in the long term, Nigeria needs to develop a productive economy that focuses on exporting non-oil goods and services, thus earning foreign exchange. Without a substantial increase in foreign exchange earnings, inflation will persist," Ekpo added.

While discussing inflation, Ekpo expressed concern about the possibility of runaway inflation, a situation where price increases spiral out of control and become uncontrollable. He stressed the importance of maintaining control over inflation to ensure its negative effects on the economy and standards of living are minimized.

The Chairman of the Foundation of Economic Research and Training concluded by urging the new Minister of Finance and the Federal Government to take immediate action to address the root causes of inflation, improve security, and reduce the cost of governance.

In conclusion, the rising inflation in Nigeria requires decisive action to tackle its underlying causes. With the expertise and experience of the newly appointed Minister of Finance, it is hoped that the government will implement measures to curtail expenditure, enhance security, and promote a productive economy to combat inflation effectively and foster sustainable economic growth.

Source of content: OOO News 2023-09-05 News

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